The market value of Polperro leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Polperro,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Polperro valuers.
In the wake of 9 months of lengthy correspondence with the landlord of her two bedroom apartment in Polperro, Holly started the lease extension process as the 80 year mark was swiftly approaching. The lease extension completed in May 2009. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr T Walker , who purchased a first floor apartment in Polperro in February 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Polperro with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed every twelve months. The lease terminated in 2092. Having 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Mr U Fournier bought a purpose-built flat in Polperro in March 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Polperro with a long lease were valued around £280,000. The average amount of ground rent was £55 invoiced yearly. The lease terminated on 6 October 2103. Considering the 77 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.